		United States Dollar
	Figures in millions unless otherwise stated		2018			2017			2016
6.	IMPAIRMENT, NET OF REVERSAL OF IMPAIRMENT OF INVESTMENTS AND ASSETS
	Investments			(36.9	)		(3.7	)		(0.1	)
	Listed investments			—			(0.5	)		(0.1	)
	Unlisted investments			—			(3.2	)		—
	Equity accounted investees
	– Far Southeast Gold Resources Incorporated (“FSE”)¹			(36.9	)		—			—
	Property, plant and equipment			(411.7	)		81.3			(76.4	)
	Reversal of impairment of Arctic Platinum Project (“APP”)²			—			39.0			—
	(Impairment)/reversal of impairment of property, plant and equipment – other³			(1.9	)		42.3			(76.4	)
	South Deep cash-generating unit⁴			(409.8	)		—			—
	Goodwill			(71.7	)		(277.8	)		—
	South Deep goodwill⁴			(71.7	)		(277.8	)		—

	Impairment, net of reversal of impairment of investments and assets			(520.3	)		(200.2	)		(76.5	)

Following the identification of impairment indicators at 31 December 2018, FSE was valued at its recoverable amount which resulted in an impairment of US$36.9 million. The recoverable amount was based on the fair value less cost of disposal (“FVLCOD”) of the investment (level 2 in the fair value hierarchy). The FVLCOD was indirectly derived from the market value of Lepanto Consolidated Mining Company, being the 60% shareholder of FSE. The impairment is included in the “Corporate and other” segment.

²	Refer note 12.2 for further details. The reversal of impairment was included in the “Corporate and other” segment.

³	(Impairment)/reversal of impairment of property, plant and equipment – other is made up as follows:


	2018			2017			2016
– Redundant assets at Cerro Corona		(1.9	)		(0.8	)		—
– Reversal of cash-generating unit impairment at Cerro Corona (2016: impairment of US$66.4 million)		—			53.4			(66.4	)
(The impairment in 2016 was due to the reduction in gold and copper reserves due to depletion, a decrease in the gold and copper price assumptions for 2017 and 2018, a lower resource price and an increase in the Peru tax rate. The reversal of the impairment in 2017 was due to a higher value-in-usefollowing the completion of a pre-feasibility study in 2017, with the assistance of external specialists, extending the life-of-mine from 2023 to 2030 by optimising the tailings density and increasing the tailings capacity by using in-pit tailings after mining activities end. After taking into account one year amortisation, the reversal of impairment amounted to US$53.4 million (2016: The recoverable amount was based on its FVLCOD calculated using a combination of the market and the income approach (level 3 of the fair value hierarchy)). Refer to accounting policies on page 135 for assumptions).
– Damang assets held for sale		—			—			(7.6	)
(Following the Damang reinvestment plan, a decision was taken to sell certain mining fleet assets and related spares. The sale of the assets was expected to be concluded during 2017. As a result, the assets were classified as held for sale (refer note 12) and valued at the lower of FVLCOD or carrying value which resulted in an impairment of US$7.6 million).
– Asset-specific impairment at Tarkwa		—			(6.8	)		—
(Relating to aged, high maintenance and low effectiveness mining fleet that is no longer used).
– Asset-specific impairment at Damang		—			(3.5	)		(2.4	)
(Relating to all assets at the Rex pit. Following a series of optimisations, the extensional drilling failed to deliver sufficient tonnages at viable grades to warrant further work (2016: inoperable mining fleet that is no longer used under the current life-of-mine plan).

(Impairment)/reversal of impairment of property, plant and equipment – other		(1.9	)		42.3			(76.4	)

⁴

For the year ended 31 December 2018, the Group recognised an impairment of R6,470.9 million (US$481.5 million) (2017: R3,495.0 billion (US$277.8 million) and 2016: Rnil (US$nil)) in respect of the South Deep cash-generating unit due to the deferral of production. R963.9 million (US$71.7 million) (2017: R3,495.0 billion (US$277.8 million)) of the total impairment was firstly allocated against goodwill and the remainder of R5,507.0 million (US$409.8 million) (2017: Rnil (US$nil)) against other assets. The recoverable amount was based on its FVLCOD calculated using a combination of the market and the income approach (level 3 of the fair value hierarchy). The impairment calculation was performed in June 2018 and given that impairment indicators still existed at 31 December 2018, a further assessment was performed. The recoverable amount at 31 December 2018 is R21,2 billion (US$1.4 billion)There were no further impairments at 31 December 2018 using the following assumptions:

•

Gold price of R525,000 per kilogram for 2019 and R550,000 per kilogram thereafter;

•

Resource price of US$17 per ounce at the Rand/US Dollar exchange rate of R14.63;

•

Resource ounces of 24.5 million ounces;

•

Life-of-mine: 75 years; and

•

Nominal discount rate of 13.5%.